XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2017 2016 Balance Sheet at December 31 Cash $ 37,120 $ 30,800 Accounts Receivable 37,850 30,800 Merchandise Inventory 47,900 40,900 Property and Equipment 175,250 132,000 Less: Accumulated Depreciation (38,250 ) (33,000 ) $ 259,870 $ 201,500 Accounts Payable $ 42,850 $ 32,500 Wages Payable 1,430 2,050 Note Payable, Long−Term 32,700 44,100 Contributed Capital 104,500 80,600 Retained Earnings 78,390 42,250 $ 259,870 $ 201,500 Income Statement for 2017 Sales $ 202,000 Cost of Goods Sold 117,160 Other Expenses 48,700 Net Income $ 36,140 Additional Data: Bought equipment for cash, $43,250. Paid $11,400 on the long-term note payable. Issued new shares for $23,900 cash. No dividends were declared or paid. Other expenses included depreciation, $5,250; wages, $24,300; taxes, $8,350; other, $10,800. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

	2017	2016
Balance Sheet at December 31
Cash	$	37,120		$	30,800
Accounts Receivable		37,850			30,800
Merchandise Inventory		47,900			40,900
Property and Equipment		175,250			132,000
Less: Accumulated Depreciation		(38,250	)		(33,000	)

	$	259,870		$	201,500

Accounts Payable	$	42,850		$	32,500
Wages Payable		1,430			2,050
Note Payable, Long−Term		32,700			44,100
Contributed Capital		104,500			80,600
Retained Earnings		78,390			42,250

	$	259,870		$	201,500

Income Statement for 2017
Sales	$	202,000
Cost of Goods Sold		117,160
Other Expenses		48,700

Net Income	$	36,140

Additional Data:

Bought equipment for cash, $43,250.
Paid $11,400 on the long-term note payable.
Issued new shares for $23,900 cash.
No dividends were declared or paid.
Other expenses included depreciation, $5,250; wages, $24,300; taxes, $8,350; other, $10,800.
Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.

Required:
1. Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions